Little Peru Federal Savings--PFSB just reported year end. Stock trades at .68% of TBV, they just finished their first 10% buyback and have already applied and received second 10%. Net income last year was 1.7mm. 200mm in assets, equity is 39mm, close to 20%.
TBV will grow 10% a year, they go 3 years in October. I would suspect any decent banker around there will want to buy this and immediately use the excess capital to grow himself, or buy back his own stock.
The problem is that there doesn't appear to be any real catalyst for them to sell. CEO is young with plenty of runway. They're buying back shares below TBV, so great use of excess capital that will be highly accretive on a go forward. But if you were going to sell near-term, why wouldn't you leave the capital alone and pay shareholders a massive dividend at close for every dollar above deliverable capital?
He's not so young, is CEO and CFO, no ability to grow--they haven't bought back any shares this year, despite trading below 80% --so with 3 years coming up in Oct, that may be the plan or they are husbanding capital---30% equity!!!---bc they know the buyer can use it??? anyway hard to lose money. This GDOT bank stub is interesting also--keep the good work, fruitful area if you are patient
